UK Median Household Income Rises 3.5 Percent to 39,200 Pounds, Poorest Fifth Up 5.6 Percent
Median household disposable income in the United Kingdom rose 3.5 percent to 39,200 pounds in the financial year ending March 2025, after adjusting for inflation and household size, the Office for National Statistics said on 2 October. The poorest fifth of the population saw its median income rise 5.6 percent to 18,300 pounds, back in line with pre-pandemic levels of the year to March 2020, while the richest fifth gained 5.0 percent to 77,000 pounds, returning to its level of the year to March 2021 after 2 years of decline.
Inequality edges down, the cash gap widens
The Gini coefficient, the standard measure of income inequality, fell 0.2 percentage points to 32.7 percent, and the richest fifth’s mean income stayed 5.6 times that of the poorest fifth. On our calculation, the richest fifth’s median was 4.21 times the poorest fifth’s, slightly down from about 4.23 a year earlier. In pounds, however, the gap between the 2 medians widened to 58,700 pounds from about 56,000 pounds on our calculation, because a smaller percentage gain on a much larger income still adds more cash.
UK household disposable income, financial year ending 2025
| Group | FYE 2025 | Change | FYE 2024, our calculation |
|---|---|---|---|
| Median, all households | £39,200 | +3.5% | About £37,900 |
| Poorest fifth, median | £18,300 | +5.6% | About £17,300 |
| Richest fifth, median | £77,000 | +5.0% | About £73,300 |
Inflation adjusted and equivalised for household composition. The financial year ending 2025 runs from April 2024 to March 2025. FYE 2024 levels are our calculation from the published levels and changes, rounded to the nearest 100 pounds.
A smaller sample this year
The survey behind the figures shrank by 29 percent, from 11,300 to 8,000 households, after the Survey of Living Conditions ended, and the statistics office cautioned that more detailed estimates, including those for retired households, carry greater uncertainty for this year.
Why it matters: Real incomes rose at the median and in both the poorest and richest fifths, and the fastest gain went to the poorest households, restoring their income to its level before the pandemic. On our reading, the richest and poorest fifths recorded similar percentage gains, consistent with broadly stable headline inequality measures, even as the cash gap between their median incomes widened.
Outlook: The statistics office has not yet set a date for the next edition. From the financial year ending March 2026 the survey will draw on a single source, whose issued sample was raised to 30,000 households from April 2026.
Sources: Office for National Statistics, The Edge.
